United

April

The United States Internal Revenue Service (IRS) has updated its draft form for taxpayers to report digital asset transactions starting in 2026.&nbsp;
In an Aug. 8 notice, the IRS <a href="https://www.irs.gov/pub/irs-dft/f1099da--dft.pd" target="_blank" rel="noopener nofollow">released</a> a draft of Form 1099-DA, “Digital Asset Proceeds From Broker Transactions.” If approved by the tax service, the form would allow US taxpayers to report crypto transactions from 2025 by the filing deadline in April 2026.
Compared to the draft <a href="https://cointelegraph.com/news/irs-draft-2025-digital-asset-reporting-form-us-taxpayers">released in April</a>, the latest proposed 1099-DA removed a box asking taxpayers to identify the “broker type” for digital asset transactions. It eliminated asking filers for the precise time of day the transaction occurred rather than just the date. The draft also removed spaces for taxpayers to report wallet addresses and transaction IDs.
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IRS Commissioner Danny Werfel&nbsp;<a href="https://www.irs.gov/newsroom/irs-updates-draft-version-of-form-1099-da-digital-asset-proceeds-from-broker-transactions-requests-comments-on-form-planned-for-2025" target="_blank" rel="noopener nofollow">said</a>&nbsp;the updated form would&nbsp;“provide more clarity for taxpayers and give them another tool to help them accurately report their digital assets transactions.” K&amp;L Gates attorney Drew Hinkes <a href="https://x.com/propelforward/status/1821941673426878501" target="_blank" rel="noopener nofollow">said</a> on X the latest version of Form 1099-DA was “massively improved,” “less burdensome,” and required “considerably less” data reporting.
“[T]hese appear to be welcome changes that CCI and industry advocated for,” <a href="https://x.com/_jikim/status/1821914009911652533" target="_blank" rel="noopener nofollow">said</a> Ji Kim, chief legal and policy officer for the Crypto Council for Innovation, in an Aug. 9 X post.
Related: <a href="https://cointelegraph.com/news/bitcoin-tax-free-zone-us-economic-dominance">US policy group proposes Bitcoin tax-free zone for digital economy growth</a>
The IRS invited users to submit comments on the draft form within 30 days. Many in the industry criticized the April version as overly strict, requiring reporting the time of the transactions and a wide range of activities. 
In June, the tax service <a href="https://cointelegraph.com/news/irs-reveals-final-regulations-crypto-broker-rules">released a final draft</a> of its crypto broker reporting requirements, saying that decentralized exchanges and self-custody wallets would not be subject to the rules. Werfel noted at the time that the requirements were aimed at closing the tax gap by stopping filers from hiding taxable income.
Magazine: <a href="https://cointelegraph.com/magazine/best-worst-countries-crypto-taxes-crypto-tax-tips/">Best and worst countries for crypto taxes — plus crypto tax tips</a>

IRS updates draft of crypto reporting form for US taxpayers

Cointelegraph

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